IQiyi eyes $300m Hong Kong IPO, sources say

iQiyi is aiming to raise US$300 million through a Hong Kong listing later this year, according to sources familiar with the matter.

The company, a video-streaming platform owned by Baidu and listed in the US, has started talks with global banks about a possible secondary listing.

iQiyi competes with Tencent Video and Alibaba’s Youku in China, and reportedly has over 400 million monthly active users.

If the listing proceeds, iQiyi would join a wave of Chinese firms turning to Hong Kong for share sales, contributing to the city’s rebound as a global IPO hub.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Escalating trade tensions drive Chinese companies toward safer listing venues

The timing of iQiyi’s Hong Kong listing exploration reflects broader concerns about U.S. market access for Chinese firms.

Recent data shows U.S. companies are reducing their China exposure, with only 48% planning to invest there in 2025, down sharply from 80% in 2024 1.

Nearly 70% of U.S. companies report being directly affected by tariffs, while 88% say U.S.-China relations impact their operations 1.

This deteriorating business environment works both ways, as Chinese companies face similar uncertainties about their U.S. listings and investor access.

The $300 million Hong Kong listing would give iQiyi access to investors who better understand Chinese market dynamics while reducing dependence on U.S. capital markets, which have become increasingly unpredictable for Chinese firms.

2️⃣ China’s streaming market strength makes domestic players attractive to regional investors

iQiyi’s Hong Kong listing timing coincides with China reaching a significant streaming milestone, becoming only the second country to generate over $10 billion in annual subscription video revenue in 2022 2.

This massive market is dominated by domestic platforms like iQiyi, Tencent Video, and Youku, which collectively control the landscape despite fierce competition 3.

The Chinese streaming market’s unique characteristics, including mobile-first consumption and lower account-sharing rates compared to global averages, create sustainable competitive advantages for local players 3.